Stock Market Review – 24th Feb 2015

February, 24, 2015

Colombo bourse edged lower on Tuesday as the main index lost 15.02 points or 0.21% to end at 7,311.29 while S&P SL 20 index lost 15.94 points (-0.39%) to end at 4,111.55.

Today’s losses were mainly driven by the blue-chip counters such as Ceylon Tobacco (closed at LKR 1,030.00, -1.9%), Lanka Orix Leasing Company (closed at LKR 84.00, -4.6%) and Bukit Darah (closed at LKR 705.00, -1.7%).

Daily market turnover reached LKR 1.3bn supported by several crossings recorded in People’s Leasing (10mn shares at LKR 25.50 per share), Ceylon Guardian (0.5mn shares at LKR 192.00 per share) and Hatton National Bank (0.2mn shares at LKR 239.00 per share). The aggregate value of crossings represented 32% of the market turnover.

People’s Leasing positioned at the top of the turnover list with LKR 382mn followed by John Keells Holdings (LKR 118mn) and Ceylon Guardian (LKR 114mn).

Losers outweighed the gainers 125 to 91 while 58 counters remained unchanged. Cash map marginally improved to 58% from 54%. 11 counters reached 52wk high prices while 8 counters dropped to 52wk low prices.

Shares of Mackwoods Energy, F L C Hydro Power and Seylan Bank non-voting were among mostly traded counters during the session. Further warrants of Ascot Holdings were traded heavily on its first day of trading. The warrant surpassed the reference price of LKR 31.21 and touched a high of LKR 42.00 but closed lower at LKR 35.40, +13.4%.

Commercial Bank released their December quarter results with a profit growth of 2% YoY. Further the bank declared the final dividend of LKR 2.00 per share along with a script dividend. Accordingly COMB has declared a cash dividend LKR 4.50 and the script dividend for FY2014. Commercial Bank voting share closed at LKR 178.10, -0.5% and the non-voting share closed at LKR 140.00, +0.2%.

Royal Ceramics declared the second interim dividend of LKR 2.00 per share (DY – 2%) during the trading session. The counter closed as LKR 119.00, +0.4%.

Foreign investors were net buyers for the second consecutive day with a net inflow of LKR 434mn. Foreign participation was 36%. Net foreign inflows were seen in People’s Leasing (LKR 366mn), Lanka Milk Foods (LKR 42mn) and Access Engineering (LKR 14mn) while net foreign outflow was mainly seen in Chevron Lubricants (LKR 9mn).

Access Engineering made an announcement to inform that the company registered a branch office in the free zone of the Republic of Djibouti under the operating name of “Access Engineering PLC East Africa Branch”. Under this agreement the company is authorized to carryout general trading activities is markets within & outside Djibouti except retail sales. The company also has plans to provide engineering services and to carryout construction projects in the Republic of Djibouti.

Further Sanasa Development Bank announced that Dr. T. Senthilverl has purchased 550,000 shares of the bank on 23rd February 2015 at a price range of LKR 118.00 – LKR 120.00. Subsequent to this transaction Dr. T. Senthilverl holds 5.6mn shares or 14.86% of Sanasa Development Bank.

Meanwhile according to media reports, Dr. T. Senthilverl has filed a winding up application in respect of Orient Garments in the commercial high court. The counter closed today at LKR 13.00, -10.3%.

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